Government Response Published To Nuttall Review
The Government has now issued its response to the Nuttall Review. The response accepts almost all of the Nuttall Review’s recommendations and sets out an action plan for a range of activity that will apparently help to grow the number of businesses that become or convert to the employee ownership model. This includes commitments to:
Establish an Implementation Group, bringing together representatives from Government, business and professional services and the employee ownership sector to drive the implementation programme. The group will hold its first meeting in November.
Work with the employee and wider mutuals sector, assessing the viability of setting up an independent Institute to raise awareness of employee ownership and provide a single point of contact for information and advice to help companies establish it.
Work with ACAS and others to develop a guide to support employers and employees interested in requesting and agreeing employee ownership.
Work with mainstream organisations including the Institute of Chartered Accountants in England and Wales (ICAEW) and the Law Society to develop simple ‘off the shelf’ templates for setting up an employee-owned company and make these readily available through professional advisors, including working with HMRC to consider the guidance available on tax issues.
Organise a Ministerial programme of regional activity to raise awareness of employee ownership.
Work with the John Lewis Partnership to examine the barriers to funding for private sector employee-owned companies.
Alongside the response, the Government has launched a consultation on amending company law to reduce the regulatory burden faced by employee-owned companies. In businesses where employees hold a direct stake, the company often needs to buy back shares when staff leave employment. These buy-back arrangements must comply with a number of company law provisions, which the Nuttall Review concluded were overly burdensome. It recommended the Government simplify these provisions to encourage the further uptake of direct employee ownership. The consultation closes on 16 November 2012.
Order published to transfer functions from Independent Safeguarding Authority and Criminal Records Bureau to new Disclosure and Barring Service
The draft Protection of Freedoms Act 2012 (Disclosure and Barring Service Transfer of Functions) Order 2012 has now been published to transfer the functions of the Independent Safeguarding Authority (ISA) and the Criminal Records Bureau (CRB) to the newly-formed Disclosure and Barring Service (DBS). The transfer will take effect on 1 December 2012. The ISA will be dissolved immediately following the transfer of its functions. The Order also makes consequential amendments to a variety of other legislation, including the Data Protection Act 1998 and the Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975.
The DBS will replace the ISA and the CRB as part of the overhaul of arrangements for safeguarding children and vulnerable adults from harm, or risk of harm, by workers whose work gives them access to such persons.
If you require further help or assistance on this or on any other employment matter, our Employment Consultancy Service will be happy to assist you on a fee-paying basis. Book an appointment on 0208 730 6125 or at firstname.lastname@example.org.
Our Employment Consultancy Service can assist you with a wide range of employment and HR issues, including redundancy programmes, termination of senior employees and directors, in-house training and drafting employment documentation compliant with the very latest changes in employment law specifically tailored to your business. If your business is unfortunate enough to find itself in receipt of an Employment Tribunal claim, our experienced team of employment litigators can help you defend your position and minimise the financial exposure to your business.